S/D books and reading through all of your articles and blogs at the moment. I love the concept, how you’ve explained it and I am beginning to understand how banks and big players trade thank god.
I had a question in regards to timeframes (t/f) in crypto for S/D and support/resistance zones.
Since its a faster market than any other markets out there, do the same t/f’s apply in crypto too e.g. for 30min/1hr/4hr the S/D zones are valid for 20 days but how many days are considered for crypto? I presume not as many days for crypto as its a faster market.
I look forward to hearing from you.
Kindest regards
My Response:
Hey there,
Awesome that you got the books!
Sorry for the delay – your email slipped through the cracks last week.
I’m not entirely sure which specific cryptos you’re trading, but I’ve put together a quick graph showing the timeframes I typically use for Bitcoin, Ethereum, and Litecoin – the big three in the crypto space.
- For the super short timeframes (1 min/5 min/15 min), I usually look back at the past day.
- For the mid-range timeframes (30 min/1 hour/4 hour), I go back about 16 days.
- For the daily timeframe, I extend my analysis to around 3 months.
The short timeframes stay the same as in forex, mirroring the holding periods of bank day traders. They’re not in it for the long haul like with longer timeframes. The daily timeframe also remains consistent based on my experience.
It’s really just those mid-range timeframes that need a slight adjustment, being a bit shorter than their forex counterparts.
Now, about support and resistance zones…
These levels don’t have an expiration date, but when you’re marking them, make sure you’re considering a certain pip distance from the center.
Here’s a quick guide:
- 1, 5, or 15 min: 50 pips
- 30 min, 1 hour: 100 pips
- 4 hour: 150 pips
- Daily: 250 pips
These are similar to what I use in forex, so you can always refer back to my support and resistance zones post if you need a refresher.
That’s the lowdown!
If you have any other questions, just shoot them my way, and I’ll get back to you as soon as I can.
Have a great day!
PAN.